3.9 Strategic operational milieu to achieve the goals:
In line with the previous year, our relentless effort to maximize shareholders value, continued in 2005, amid ever changing and increasingly competitive and turbulent environment. To achieve overall success, our operational strategies were to further diversify our income streams, improve fee-based earnings, enhance productivity and manage credit risk efficiently. During the year under review, your Bank has extended its service arms by installing 45 Automated Teller Machines (ATMs) 400 Point of Sale Terminals (POSTs) and 9 new Branches to reach the customers doorsteps.
3.10 Corporate Governance our mainstay:
In recent times, much emphasis is being put on corporate governance. In order to uphold the code of corporate governance, all policy matters are taken and guidelines are being followed in conformity with the practices of good governance.
Board of Directors, as per Articles of Association of the Company consists of not more than 10 members. The Bank formed its Audit Committee since 2002.
The activities of Board of Directors, as always, are transparent and based on highest professional norms and ethics, which provide strategic planning and policy guidelines of the Bank. During the year 2005, the Board met eight times, which is roughly the average number of times the Board meets every year. Through its extended arms, 42 meeting of the Executive Committee and 10 meeting of the Audit Committee of the Board were held in 2005 for reviewing the performance of various activities of the Bank designated to them. In , the core of corporate governance, in its essence, is the enhancement of shareholders value whilst being ethical and accountable to the society and ecology. Your Bank always conducted highest ethical standards, which are in the best interest of all its stakeholders.
At the management level, important decisions of the Bank are being taken through a number of Committees, namely Management Committee, Credit Committee, Purchase Committee, asset liability committee and likewise, headed by the Managing Director and comprising of senior executives as their members, which not only ensures best management practice but also guarantees transparency, impartiality and fairness in all its decision-making process.
3.11 Core Risk Management:
Risk is an integral part of our banking industry and the mainstay of our risk management principle is to find equilibrium between risk and return. Bangladesh Bank, in October 2003, undertook a project for implementing Core Risk Management System in every bank by identifying 5 (five) core risk areas of banks. We have already taken the necessary measures for implementation of the same and are continuously striding ahead for its full compliance. Dear Shareholders, we can assure you that your Bank attaches highest importance to risk management. Managing credit risk, as always, starts first from the very process of selection of quality borrowers, followed by a well defined credit checking, risk analysis and approval process, which are carried out by competent personnel at different tiers. All the credit functions are constantly being supervised and monitored, not only to keep the credit portfolio in sound footing but also for recovery/ regularization of loan accounts. For ensuring perfection of security documentation, is still continuing the unique process of rechecking of security documentation by a second legal adviser, other than the lawyer who vetted it originally. Above all, our Bank, as you know have installed a high tech state-of-the art Banking Software that allows better and more effective monitoring of loan portfolio than before.
At the same time, the Bank has also set guidelines for managing other core risk areas of Asset Liability/Balance Sheet Risks, Foreign Exchange Risks, Internal Control & Compliance Risks and Money Laundering Risks. Two committees, namely Asset Liability Committee (ALCO) and Exchange Rate Committee, are engaged in reviewing and mitigating the associated risks under their purview. Further, the branches of are invariably audited by internal audit team of the Bank periodically, who give, among others, special emphasis on checking of credit documentation and rectification of errors and omissions, if any. Awareness is being created among the employees of the Bank to identify suspicious transactions through trainings/seminars.
Next...
কোন মন্তব্য নেই:
একটি মন্তব্য পোস্ট করুন